Correlation Between First Eagle and Clearbridge Aggressive

Can any of the company-specific risk be diversified away by investing in both First Eagle and Clearbridge Aggressive at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining First Eagle and Clearbridge Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between First Eagle Gold and Clearbridge Aggressive Growth, you can compare the effects of market volatilities on First Eagle and Clearbridge Aggressive and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in First Eagle with a short position of Clearbridge Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Clearbridge Aggressive.

Diversification Opportunities for First Eagle and Clearbridge Aggressive

0.7

Correlation Coefficient

First Eagle  Clearbridge Aggressive

Poor diversification

The 3 months correlation between First and Clearbridge is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Clearbridge Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Aggressive and First Eagle is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on First Eagle Gold are associated (or correlated) with Clearbridge Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Aggressive has no effect on the direction of First Eagle i.e., First Eagle and Clearbridge Aggressive go up and down completely randomly.

Pair Corralation between First Eagle and Clearbridge Aggressive

Assuming the 90 days horizon First Eagle Gold is expected to generate 2.26 times more return on investment than Clearbridge Aggressive. However, First Eagle is 2.26 times more volatile than Clearbridge Aggressive Growth. It trades about 0.19 of its potential returns per unit of risk. Clearbridge Aggressive Growth is currently generating about 0.08 per unit of risk. If you would invest  4,130  in First Eagle Gold on August 16, 2025 and sell it today you would earn a total of  1,153  from holding First Eagle Gold or generate 27.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

First Eagle Gold  vs.  Clearbridge Aggressive Growth

First Eagle Gold

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Gold are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, First Eagle showed solid returns over the last few months and may actually be approaching a breakup point.

Clearbridge Aggressive

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Clearbridge Aggressive Growth are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Clearbridge Aggressive is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with First Eagle and Clearbridge Aggressive

The main advantage of trading using opposite First Eagle and Clearbridge Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Clearbridge Aggressive can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Clearbridge Aggressive will offset losses from the drop in Clearbridge Aggressive's long position.

The idea behind First Eagle Gold and Clearbridge Aggressive Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.